2008 and 2009 Contribution Limits for 401(k)

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WASHINGTON, D.C., Oct. 22 (SEND2PRESS NEWSWIRE) -- The newly released IRS 2009 contribution limits for qualified retirement plans means that individuals and their employers can contribute more than ever before to a 401(k) plan, announced Lamaute Capital (member FINRA, SIPC). In addition to the opportunity to shelter from taxes a big portion of income, many 401(k) plans have a loan feature that can give its owners access to cash in times of need.

Lamaute CapitalA 401(k) provides a great tax break to employees who contribute to the plan, and no business is too small to have a 401(k). Even a small business with no employees or employing a spouse only can establish a One Person 401(k) plan, according to Lamaute Capital.

This includes independent contractors with 1099 income, freelancers, sole proprietors, partnerships, Limited Liability Companies (LLC) or corporations.

Key benefits of a 401(k) plan:
* High maximum contribution limit.
* Contributions are tax deductible and are based on compensation or earned income. Roth contributions are from after-tax income.
* Funds in a 401(k) grow tax-deferred.
* Assets can be rolled over from other qualified plans or IRA's into a 401(k).
* One can take a loan from a 401K (if allowed by the plan) - up to the lesser of 50% or $50,000 of account balance.

401(k) Contribution Limits for 2008 and 2009

Tax Year	2008		2009

Salary Elective Deferral Limit
$15,500 $16,500

Maximum Employer + Employee Defined Contribution Plan Limit
$46,000 $49,000

Catch-Up Contribution Limit For Age 50+
$5,000 $5,500


A One Person 401K also known as Solo 401K must be set up no later than December 31, to be eligible for tax deductions for that tax year. One can go to Lamaute Capital's website to request a free Solo 401K application kit.

Lamaute Capital is a member of FINRA, SIPC.

"U.S. Treasury Circular 230 Notice: Any U.S. federal tax advice included in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal tax penalties."

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REFERENCES: Lamaute Capital Inc, Solo 401K plans, Lamaute Capital Inc., Virginia, One Person 401K also known as Solo 401K, member of FINRA, SIPC, invest safe, investsafe, tax-deferred, IRA, news, press release from Lamaute Capital, Inc., Oct 22, 2008, Taxes and Accounting, , , , , 2008 and 2009 Contribution Limits for 401(k)